U GRO Capital, a leading DataTech NBFC focused on MSME lending, is intensifying its focus on micro loans to small businesses in Karnataka. In an ambitious strategy aimed at doubling its micro loan customer base by the end of FY24, the company plans to roll out a comprehensive suite of offerings tailored to meet the unique requirements of the state’s small businesses.
Micro loans from U GRO Capital typically span a range of 1 Lakh to 10 Lakhs for unsecured loans, and secured loans up to 25 Lakhs. These loans are specially crafted for small businesses boasting an average turnover of over 50 Lakhs.
The MSME sector remains a crucial cog in India’s economy, contributing to approximately 30% of the nation’s GDP, accounting for 50% of its exports, and providing employment to over 11 crore people. Karnataka, with its vibrant sectors like food processing, electronics, readymade garments manufacturing, automobile, and chemical plants, boasts over 8.75 lakh Micro, Small-Scale units, which provide employment to over 60 lakh people.
Despite their significance, micro-enterprises often encounter challenges in availing credit due to stringent requirements and conventional credit assessment models. U GRO Capital, through its proprietary underwriting model (GRO Score 3.0) and with its focus on cash flow-based lending, is paving the way for more inclusive financial solutions. By addressing these challenges, the company is determined to play a pivotal role in aiding financial inclusion in the region.
By FY24, U GRO Capital aims to extend credit to around 25,000 micro enterprises across India and to around 3,000 small businesses in Karnataka through its three prime branches in Bengaluru, Mysore and Hubli and 15 micro branches spread across the state.
“We are excited to expand our focus on the Karnataka market, a region that presents a wealth of opportunities for U GRO Capital. Our commitment to providing comprehensive, tailored financial solutions directly supports the state’s vibrant and dynamic micro and small business sectors. Our unique underwriting model allows us to identify and serve creditworthy businesses that may be overlooked by traditional lending models, thereby fostering economic growth and inclusivity,” said J. Sathiayan, Chief Business Officer, U GRO Capital.
U GRO Capital’s strategy seeks to fuel growth and unlock the potential of micro-enterprises in Karnataka, contributing to the broader national objective of boosting the MSME sector.